USDA Allocates $180M for Clean Energy and Biofuel Projects Across the US

The USDA is providing US$ 120 million in REAP grants to support 516 projects across 39 states

By Vaishali Mehta
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USDA Allocates $180M for Clean Energy and Biofuel Projects Across the U.S.

In an effort to enhance energy security and promote cleaner energy alternatives, the U.S. Department of Agriculture (USDA) has announced the funding of 586 projects aimed at expanding access to clean energy systems and increasing the availability of domestic biofuels. This initiative, spearheaded by USDA Secretary Tom Vilsack, involves an investment of nearly US$ 180 million through the Rural Energy for America Program (REAP) and the Higher Blends Infrastructure Incentive Program (HBIIP),with funding from President Biden’s Inflation Reduction Act.

Strengthening Energy Independence and Economic Growth

The projects span 42 states, Guam, Puerto Rico, and the U.S. Virgin Islands, and are expected to create economic opportunities for small businesses, farmers, ranchers, forest landowners, and agricultural producers. According to USDA Secretary Vilsack, these investments will strengthen America’s energy independence while addressing climate change impacts and generating revenue opportunities for rural communities.

Since the inception of the Biden-Harris administration, USDA has directed over US$ 3 billion toward 11,221 projects under REAP and more than US$ 323 million toward 399 projects through HBIIP. This announcement also marks a significant milestone in leveraging the Inflation Reduction Act, which has allocated more than US$ 1.3 billion for 8,012 clean energy initiatives and US$ 287 million for 345 biofuel-related projects.

Funding Clean Energy Projects Nationwide

The USDA is providing US$ 120 million in REAP grants to support 516 projects across 39 states, Guam, Puerto Rico, and the U.S. Virgin Islands. These projects focus on energy efficiency upgrades and the adoption of renewable energy systems, including wind and solar power.

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In Pennsylvania, Wolfe Brothers Farms will receive a US$ 500,000 grant to purchase and install an energy-efficient grain dryer, saving approximately US$ 103,000 annually and reducing energy use by 60%. Similarly, Rosewood Dairy Inc. in Wisconsin will utilize a US$ 500,000 grant to upgrade its lighting system, saving over US$ 18,000 annually and reducing energy consumption by 60%. South Dakota’s Dakota Prairie Pork LLC will install a 49.1-kilowatt solar array with a US$ 50,000 grant, cutting energy costs by nearly US$ 6,800 per year.

These investments are part of the Justice40 Initiative, which aims to ensure that disadvantaged communities benefit from federal climate and clean energy investments.

Also read: Wavar and Krushi Sarthi Join Forces to Revolutionize Indian Agriculture Through Sustainable Pest Management

Expanding Access to Domestic Biofuels

To further bolster energy independence, nearly US$ 60 million is being allocated through HBIIP to enhance the availability of domestic biofuels in 24 states. This funding enables fueling station and distribution facility owners to install and upgrade infrastructure, including fuel pumps and storage tanks, to support biofuel distribution.

For instance, EZ Petroleum in California will use a US$ 1.3 million grant to install 30 E85 dispensers and seven ethanol storage tanks at multiple locations, increasing ethanol sales by over 391,000 gallons annually. In Florida, Mas Fuel Distributors will leverage a US$ 2 million grant to install ethanol dispensers and storage tanks at three fueling stations, boosting ethanol sales by nearly 2 million gallons per year. In Iowa, Morning Star Station LLC will expand its biofuel offerings with a US$ 398,000 grant, adding dispensers and storage tanks that are projected to increase biofuel sales by more than 116,000 gallons annually.

Widespread Impact Across the Nation

The projects announced under REAP and HBIIP will benefit communities in diverse locations, including Alabama, Alaska, California, Florida, Illinois, Minnesota, New York, South Dakota and Texas, among others. These investments aim to provide sustainable energy solutions while supporting rural development and reducing energy costs for businesses and communities. By funding these initiatives, the USDA underscores its commitment to fostering a resilient and sustainable energy landscape.

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